Capital Gains Tax Update
From 23 June 2010 CGT changed. Broadly speaking the changes are:
- an increase in the rate of CGT to 28% for gains falling above an individual's taxable income basic rate band (which for this purpose includes taking account of the taxable capital gains amount). This band is currently £37,400
- gains falling within any unused income tax basic rate band will continue to be taxed at 18%, subject to whether or not they qualify for Entrepreneurs' Relief
- an increase in the rate of CGT to 28% for trustees and personal representatives
- an increase in the lifetime limit for Entrepreneurs'' Relief from £2 million to £5 million and changes to the way in which this relief is calculated (but still to give a rate of tax on qualifying gains of 10%).
The CGT annual exempt amount (AEA) for 2010/11 has been kept the same at £10,100. One consequence of these changes is that we now have two rates and methods of computing capital gains tax liabilities for 2010-11. Those up to 22 June 2010 and those after this date.
If you have taxable gains in this current tax year please let us have the details as soon as possible so we can accurately forecast liabilities for you